Money Management

Costco’s prices aren’t random. Read on to see what they mean so you can make smarter shopping decisions. [[{“value”:”

Whether you’re new to Costco or have shopped there for years, you may not pay attention to the store’s prices other than to compare them to outside stores and confirm they’re lower (which is often the case).

But you should know that the numbers you see on Costco’s pricing labels actually mean something. And cracking that code could help you save more money. Here’s a rundown of what the numbers mean.

1. Prices that end in a nine

If you walk through Costco, you’ll probably notice that many store items end with the number nine. And whether it’s $15.99, $17.29, or another number, generally speaking, if there’s a nine on the end, it means you’re seeing Costco’s regular price for the item at hand. And this applies to online prices, too.

Of course, this doesn’t mean you aren’t getting a good deal. Costco’s regular prices are often cheaper than what you’ll see in other stores.

For example, the online price for Costco’s signature Kirkland almond butter is $7.49. That’s $0.28 per ounce. You might pay almost double that on a per-ounce basis at a regular supermarket.

Plus, using the right credit cards at Costco could help you save even more. Click here for a list of the best credit cards for Costco shoppers.

2. Prices that end in a seven

If you see a seven at the end of a Costco price label, it means the item is on clearance. And that should signal you to scoop up that item if it’s something you use regularly. You may want to buy a few extra, in fact, if it’s an item you know you’ll use, and there’s a long expiration date.

For example, say there’s a type of granola you like whose price is $8.47. That should signal that it’s on sale. If you eat it almost daily and there’s a three-month window to use it up before the sell-by date, getting a second bag could make sense if you usually go through one bag every five to six weeks.

3. Prices that end with 88

If you see an item that ends with 88 — for example, a blender priced at $39.88 — it’s a sign it’s an item a manager has marked down. Why might this happen? Perhaps the item was previously used but returned in sellable condition. Or, it could simply be that a store manager wants to move old inventory off the shelves and is giving a discount to help make that happen.

If you’re not happy about bringing home a previously used item but you’re also not sure whether that’s the case, you could always bring the item to customer service and have them look up its history. But remember, Costco is unlikely to restock an item that’s in bad shape. So if you see an item on the shelf for sale, it generally means it’s a fine item to bring home.

4. Items with an asterisk

If you see an asterisk on a Costco price label, and it’s an item you love, stock up if spoilage isn’t an issue. An asterisk usually means the item in question is about to be discontinued.

Also, while an asterisk doesn’t automatically mean the item in question is marked down from its original price, sometimes, that is the case. But either way, it could pay to stock up if it’s a product you rely on so you’re not left in the lurch. You may need to find a replacement eventually, but if you stock up, you buy yourself more time.

So there you have it. You might think Costco’s prices are random, but there’s a method to those numbers you see all over the store. Knowing what they mean can help you make savvier shopping choices.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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If you’re age 40, you might feel behind on retirement savings — or you could be totally fine. See how much should be in your brokerage account. [[{“value”:”

How much money should you have saved for retirement by age 40? As a personal finance expert and long-time investor, this question makes me a little uncomfortable. It’s a tough, kind of unfair question because it’s impossible to know if you’re ever saving enough for retirement at age 40, or at any age. The future is unknowable.

The stock market could skyrocket, plummet, or go sideways for a Nikkei 225 index–style “lost decade.” You could get a big promotion at work, start a thriving business, have a setback in your career, or suffer a health problem that derails your plans. And much of it is beyond your control.

Let’s look behind the numbers and see what it really means for how much you should have saved by age 40 — and how you can boost your investments for the future.

Basic rule of thumb: Three times your salary saved by age 40

Similar to the much-recited personal finance advice that everyone should have three months of emergency savings, there’s a common rule of thumb in retirement planning that by age 40, you should have three times your salary saved for retirement. This “three-times salary” amount could include investments in your 401(k), traditional individual retirement account (IRA), Roth IRA, and taxable brokerage account.

If you’re not already saving for retirement at work in a 401(k) or other employer-sponsored plan, you should definitely do that. But if you want to boost your savings even more, start by opening an IRA (traditional or Roth, or both if you qualify).

Click here to learn more about the best IRA accounts from top-ranked online brokers and trading platforms. These brokerages make it easy for you to open an extra retirement investment account outside of your job.

But just like the three-month emergency fund rule, the three-times salary rule is not realistic. According to recent data from Vanguard in the How America Saves 2024 report, the typical 40-year old Vanguard customer has only $35,537 saved in their 401(k) or other direct contribution workplace retirement plan.

But the median U.S. salary for a 40-year-old is $1,247 per week, or $64,844 per year. That means the typical 40-year-old should have $194,532 saved for retirement — but most people are nowhere near that.

Is it too late to save for retirement at age 40?

Here’s why the “three-times salary by age 40” rule grinds my gears: It makes people feel bad about themselves. If you don’t have this much saved, you might feel inadequate.

But your retirement plan isn’t hopeless! Here are a few fun facts about your retirement:

If you’re 40 years old in 2024, you have 27 more years until Social Security retirement age. You have 27 more lucrative years to work, save, invest, and let your money grow.If you have the typical amount of retirement savings at age 40, you have a good start — and you still have time to save more, invest, and let your money grow.If you’re 40 years old, your peak earning years may still be ahead.You’re going to get some Social Security income in retirement — the typical retiree’s benefit check as of January 2024 was $1,907 per month. That’s far better than nothing!

How your retirement savings can grow from age 40

If you’re the typical 40-year-old with $35,537 saved for retirement, don’t feel bad. Let’s look at how your retirement savings can grow. We’re going to assume:

You have the typical 40-year-old’s $35,537 already saved for retirement.You earn the typical 40-year-old salary of $64,844 per year.You save 10% of your salary for retirement (including employer contributions) — $6,500 per year, or $542 per month.You invest your retirement savings in a diversified portfolio of mostly stock and bond ETFs that earns an average annual return of 8%. (This is not unrealistic; the S&P 500 index has delivered an average annual return of 10.7% for the past 30 years.)You work, save, and invest this way for the next 27 years until your Social Security retirement age of 67.

After 27 years, you will have $852,001 for retirement. If you withdraw 4% of your portfolio per year, that makes an annual income of $34,080. Add about $2,000 per month ($24,000 per year) from Social Security, and that means your total retirement income would be $58,080.

That adds up to about 89.5% of the typical 40-year-old’s current salary — which is actually really good! That’s on the high side of what retirement planning experts recommend. (That’s another rule of thumb: You should try to save enough for retirement so that you can replace 75% to 80% of your working years income.)

Based on our calculations, the typical 40-year-old isn’t so far behind on retirement savings after all. Take that, “three-times salary” rule!

Bottom line

Retirement planning isn’t a race. Instead of worrying about whether you’re behind, take a deep breath and think about how much time you still have ahead of you to earn, save, and let your money grow.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Retirement means never working again, right? Maybe not. Find out why having a job in your golden years is good for your life and your finances. [[{“value”:”

What does retirement mean to you? For a lot of people, it means turning in their daily commute, brown-bag lunch, and briefcase to enjoy never working again. But for others, it might mean working less but still seeing a paycheck deposited into their top-rated checking account.

According to Pew Research, 1 in 5 Americans aged 65 and up were still working in 2023 — and their earning power has grown more than that of younger workers, to boot. Let’s take a closer look at why having a job in your golden years can be a net positive for your life.

Pad your emergency fund

The reason any of us work is to earn money, and your need for that sure won’t go away once you’re done with the daily grind. Working in some form or fashion in your golden years gives you the chance to ensure your emergency fund is flush with cash for unplanned expenses.

You may be drawing from a retirement account to cover your planned expenses, but it’s still a smart idea to have at least six months’ worth of bills in an accessible savings account. You never know when you’ll need to tackle a home or car repair, and you’ll sleep a lot better at night knowing that money is ready. With a part-time job, you can also replenish your emergency fund as you dip into it.

Want to earn the best return possible on your emergency fund? Explore The Ascent’s picks for the best high-yield savings accounts to earn 4% APY — or more.

Keep investing

Along with adding more cash to your savings account, earning money via a retirement job also gives you the chance to continue investing. While it’s true you won’t have the same long timeline you had when you were investing in your 20s, 30s, or 40s, just being able to buy stocks and stay invested for a decade could benefit your finances.

The S&P 500 has earned an average annual return of about 10% over the last 50 years. But let’s be more conservative and say you manage to contribute $200 to a brokerage account per month over 15 years and earn an 8% return.

Your contributions ($36,000) could end up growing to be worth more than $65,000 over 15 years. And at a time in your life when you’re likely to have more medical expenses, that money is likely to come in handy.

Explore a new line of work

Maybe you hated the career you were in during your prime working years. For you, the prospect of going back to that type of work is likely unappealing.

But if you’ve been able to save and invest in a retirement account like an IRA during your career, and you just need a part-time income to get by now, you have a great opportunity to explore something new. I’ve known many seniors who were doing just that in retirement, and I met a lot of them in my own former career as a museum professional.

I knew teachers (and even farmers!) who retired and came to work part-time as museum docents. Others had office jobs but came aboard to be front-desk associates and gift shop clerks.

One of my favorite museum helpers had retired from a career as a nuclear technician, went to school to get a masters degree in library science, and helped me with curatorial projects, exhibits, and even grant-funded work. All of these people loved their retirement jobs and were excited to educate the public and help preserve history.

Enjoy the emotional and mental benefits

At its best, working does more than pad your bank account — it gives you the ability to socialize with others. According to the NIH’s National Institute on Aging, seniors can be particularly vulnerable to loneliness and social isolation, which comes with physical health impacts. Working as a retiree could mean avoiding depression, cognitive decline, and even heart disease.

You might’ve seen the end of your prime working years as a time of celebration. But continuing to work offers a lot of benefits that are worth considering. Even a casual side hustle like walking dogs or driving for a ride-hailing service gets you out of the house and gives you something to occupy your time. It’s certainly worth considering to see if it’s right for you.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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